NC H925

Creates a regulatory framework for consumer legal funding transactions, where consumers sell a contingent interest in potential lawsuit proceeds to funding companies in exchange for upfront cash for personal or household expenses

Requires consumer legal funding companies to register with the Commissioner of Insurance, pay a $1,000 registration fee renewable every three years, and maintain a $50,000 surety bond or letter of credit

Caps charges by prohibiting fees from accruing more than 36 months after contract execution, and allows consumers to request charges be reduced to a maximum of 25% of gross proceeds from the legal claim

Mandates contracts be written in plain language with specific disclosures, including a 10-business-day right of rescission, itemized charges, and repayment schedules at six-month intervals

Prohibits funding companies from paying referral fees to attorneys or healthcare providers, influencing legal claim decisions, paying litigation expenses, or accepting funds from designated foreign adversaries